Money issues top early legislative agenda

Speaker of the House Shap Smith, left, finishes his address to the House of Representatives on the first day of the Legislature at the Statehouse in Montpelier on Tuesday, January 5, 2016. (Photo: GLENN RUSSELL/FREE PRESS)Buy Photo

MONTPELIER - Money issues are likely to dominate the first weeks of the legislative session, as lawmakers turn their focus on filling gaps in the current year's budget and addressing the state threshold on local school spending.

In a short speech Tuesday, Senate President Pro Tem John Campbell said he expects a “short winter session.”

“This year we have a lot of issues that we’re going to be dealing with that are going to be, some controversial, some difficult to deal with here in this chamber,” Campbell said. “I would ask, as always, that we treat each other with respect and courtesy.”

Speaker of the House Shap Smith opened the 2016 session by vowing to tackle “the thorny issues” and not focus on the politics of an election year.

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House Minority Leader Rep. Brian Savage, R-MIlton, right, tells members when the House Republican caucus will be meeting on the first day of the Legislature at the Statehouse in Montpelier on Tuesday, January 5, 2016. (Photo: GLENN RUSSELL/FREE PRESS)

One of the first items on the House agenda is the high-spending threshold facing school districts under Act 46.

The school reform bill passed last year imposes penalties on districts whose budgets exceed a spending threshold. Although the Legislature hoped to contain rising property taxes with Act 46, many districts say that the penalties will cause taxes to rise, as they struggle to cap spending after a 7.9 percent increase in health insurance costs.

Lawmakers are under a tight deadline to work out a solution. But Smith said he “can’t make any promises for Act 46” to be figured out by the third week in January, when districts will have to finalize their budgets.

Smith’s first priority, he said, is to “make sure Act 46 is sustainable,” even if a solution is not reached until after the January deadline.

Rep. David Sharpe, D-Addison, chairman of the House Education Committee, said a resolution by the end of January was "highly unlikely," though he promised to work “with due diligence.”

“There is no agreement at the moment,” he said.

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House Minority Leader Rep. Don Turner, R-Milton, addresses the House Republican caucus on the first day of the Legislature at the Statehouse in Montpelier on Tuesday, January 5, 2016. (Photo: GLENN RUSSELL/FREE PRESS)

Legislators will also focus on Gov. Peter Shumlin’s proposed budget adjustment for fiscal 2016..House Minority Leader Rep. Don Turner, R-Milton, said his first priority is to reduce spending.

Turner lamented that the governor’s proposal would increase general fund spending and rely on more one-time funds.

“I can’t believe we can focus on anything but the money first,” he said. “If it takes voting no every single time, then that’s what it takes.”

Republicans also complained that the governor fails to fully address one looming expense -- an extra $10.3 million in Medicaid payments. The governor’s budget adjustment would pay for about $1.7 million. then leave the rest to be paid later.

“We’re hoping there’s going to be more money at the end of the rainbow,” Turner said.